For the United States, the Agreement applies to the Old-age, Survivors, and Disability Insurance (OASDI) programs and the corresponding tax laws (Federal Insurance Contributions Act (FICA) taxes for employment and Self-Employment Contributions Act (SECA) taxes for self-employment). The Agreement does not apply to Medicare provisions. If an employee is exempt from U.S. Social Security coverage under this Agreement, neither the employee nor the employer share of the FICA tax is due as long as the exemption is effective. A self-employed person is exempt from paying SECA taxes (equivalent to the employee and employer shares of the FICA tax) for any period the exemption is effective.

The U.S. laws to which the Agreement applies are title II of the Social Security Act except section 226 (Medicare benefits), 226A (Medicare coverage for certain persons suffering from renal disease), and section 228 (special age-72 payments-Prouty benefits). The Agreement excludes hospital insurance under Medicare. It is understood, though not specified, that persons to whom the Agreement applies who qualify independently for Medicare hospital insurance benefits would be entitled to receive such benefits.

For Austria, the Agreement applies to social security coverage and taxes that finance retirement, survivors, and disability benefits and to the taxes that finance Austrian sickness and accident insurance. Consequently, if a person is exempt from Austrian social security coverage as a result of the Agreement, no contributions are due for these programs. However, a worker may still have to pay contributions for other types of Austrian benefits such as unemployment and children's allowances.